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Holders Dump as Ethereum Price Falls: Is Weakness Temporary?

The Ethereum price is entering November with a new sell-off. The price fell 3.8% in the past 24 hours to $3,738. After a difficult period in October, with losses of almost 17%, the market had been hoping for a recovery, but data suggests investors are reducing their positions.

However, on-chain support zones and a significant momentum signal suggest the current decline may not last long.

Holders Pull Back, But On-Chain Support Remains Strong

The holder accumulation rate—an indicator measuring the rate at which existing Ethereum wallets increase their balances—fell to 29.79%, its second lowest level of the month. A similar drop (29.66%) on October 9 caused the price to fall 14% from $4,370 to $3,750.
This decline suggests that long-term investors are either reducing their positions or waiting for better prices. Last week's predicted death cross—Ethereum's short-term moving average crossing below its long-term one—also occurred, confirming a brief sellers' advantage.

However, the cost-based distribution heatmap shows a strong support cluster between $3,649 and $3,686, where approximately 1.09 million ETH was last traded.
The Cost Floor Heat Map shows the last price levels at which investors purchased their coins. This helps identify key support and resistance zones based on past investor activity.

Such intense accumulation often acts as a cushion. Therefore, if the Ethereum price declines further, this zone could trigger dip buying and limit deeper losses.

Bullish Divergence and Ethereum Price Action Point to a Possible Rebound

On the daily chart, Ethereum is trading within an ascending triangle, where prices are making higher lows along the ascending support line. This structure reflects buyer resistance even during pullbacks. Fibonacci retracement levels mark key resistance and support zones within this triangle.
Between October 30 and November 3, the ETH price formed a higher low while the Relative Strength Index (RSI)—an indicator that measures the balance between buying and selling power on a scale of 0 to 100—formed a lower low. This pattern is a hidden bullish divergence, suggesting that the underlying momentum remains positive despite the price decline.
If the Ethereum price manages to stay above the $3,679 support zone, a recovery towards $3,899 (0.382 Fibonacci retracement) could begin. Further strength above $4,035 and $4,132 would confirm the recovery and invalidate the short-term bearish trend. This key support area was previously confirmed by the cost base heatmap.

However, if the daily price closes below $3,679, it will break the ascending trend line, paving the way for a deeper correction. This could push ETH prices to $3,512, invalidating the recovery expectations.